Yes, what you heard from your grandparents during your childhood was absolutely right. It’s always the early bird that catches the worm, especially in the world of investing. Therefore, starting your investments early can have a huge impact on your retirement corpus and financial plan.
Following are 3 fundamentals of investing that will stand you in good stead, going forward:
You might have heard about the compounding effect of investment. Smaller chunks of money regularly invested over a well-defined time horizon will take shape of a larger corpus at retirement time owing to compounding effect. Therefore, starting early gives you more time to compound your investments, it’s as simple as that.
Starting early alone will not help you as an investor. You need to inculcate a disciplined investment culture, which involves making regular investments. Just imagine you invested for six months and stopped for a year. In that case you would have lost out on the compounding effect of money for the 12 months you did not invest. Moreover, didn’t you hear your mother tell you ‘small money makes big money’. Indeed, smaller chunks of money invested over a defined time horizon can give you amazing results.
Choosing the right investment vehicle and review its performance regularly
You might have started investing early and regularly, but in fixed deposits and bank savings. This would mean that although you’ve started investing early, your retirement corpus will not be as desired, since inflation will beat bank savings and FD interest rates in the long run. Therefore, choosing the correct investment vehicle can have an exponential impact on the end corpus you will create at retirement time. If you would have invested the same corpus in mutual fund SIPs, the results would have been totally different, since the returns will beat inflation in the long run, giving you your desired retirement corpus.
ACMIIL has made financial planning and investment easier for you through its state-of-the-art Investmentz App. The app allows you to create your investment plan, set financial objectives, and plan your time horizon based on your risk-taking ability. Moreover, it will help you make the investments as per your investment plan and based on your diversification strategy. It operates in self-invest and expert-advice modes.
ACMIIL’s Investmentz App helps you invest your hard-earned money keeping the three fundamentals of investing in mind.
You can download the Investmentz App at the Google Playstore.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.